CHAPTER – 4

THEORTICAL BACKGROUND

MUTUAL FUND IN INDIA :

Concept of mutual fund entered Indian financial scene way back in 1964 that was famous
unit 64 later earned famed under name of US 64 had a near monopoly status for more
that 2 decades. This fund was a public sector closed ended fund that list of fund holdings
are allocation of total assets amongst various assets statements was never known to the
investing public. It was only at economic liberalization process that began after 1991 that
Indian financial sector began opening up. This it was in year 1993 the first privet sector
open-ended mutual fund was launched by the Kothari pioneer asset management
company. This blue chip fund and prima fund (both equity funds) provided first hand of
competition to Unit Trust of India. Suddenly, Indian investor had wide range of invest
opportunity, were not available in pre-reforms era between 1997 to 2001 tremendous
growth of Indian Mutual Fund Industry with number of players increasing and balanced
funds. Between years 1998-2001 boom in Indian stock market was led by InfoTech
companies. Huge project margins saw an unprecedented rise share prices. This was time
when some AMC launched IT sector mutual fund.

SEBI Regulations On Mutual Funds :

The Government brought Mutual Funds in the Securities market under the regulatory
framework of the Securities and Exchange board of India (SEBI) in the year 1993. SEBI
issued guidelines in the year 1991 and comprehensive set of regulations relating to the
organization and management of Mutual Funds in 1993.

HISTORY OF MUTUAL FUNDS IN INDIA :

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank of India. The history
of mutual funds in India can be broadly divided into four distinct phases.
First Phase – 1964-87 :
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up
by the Reserve Bank of India and functioned under the Regulatory and administrative
control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the
end of 1988 UTI had Rs. 6,700 crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation
of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June
1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up
its mutual fund in December 1990. At the end of 1993, the mutual fund industry had
assets under management of Rs. 47,004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the
year in which the first Mutual Fund Regulations came into being, under which all mutual
funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer
(now merged with Franklin Templeton) was the first private sector mutual fund registered
in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI
(Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets
of Rs. 1,21,805 crores. The Unit Trust of India with Rs. 44,541 crores of assets under
management was way ahead of other mutual funds.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs. 29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other
schemes. The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come
under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000 crores of
assets under management and with the setting up of a UTI Mutual Fund, conforming to
the SEBI Mutual Fund Regulations, and with recent mergers taking place among different
private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth.
ADVANTAGES OF MUTUAL FUNDS:

If mutual funds are emerging as the favorite investment vehicle, it is because of the
many advantages they have over other forms and the avenues of investing, particularly
for the investor who has limited resources available in terms of capital and the ability
to carry out detailed research and market monitoring. The following are the major
advantages offered by mutual funds to all investors:

Portfolio Diversification:

Each investor in the fund is a part owner of all the fund’s assets, thus enabling him to
hold a diversified investment portfolio even with a small amount of investment that
would otherwise require big capital.

Professional Management:

Even if an investor has a big amount of capital available to him, he benefits from the
professional management skills brought in by the fund in the management of the
investor’s portfolio. The investment management skills, along with the needed
research into available investment options, ensure a much better return than what an
investor can manage on his own. Few investors have the skill and resources of their
own to succeed in today’s fast moving, global and sophisticated markets.

Reduction/Diversification Of Risk:

When an investor invests directly, all the risk of potential loss is his own, whether he
places a deposit with a company or a bank, or he buys a share or debenture on his own
or in any other from. While investing in the pool of funds with investors, the potential
losses are also shared with other investors. The risk reduction is one of the most
important benefits of a collective investment vehicle like the mutual fund.

Reduction Of Transaction Costs:

What is true of risk as also true of the transaction costs. The investor bears all the costs
of investing such as brokerage or custody of securities. When going through a fund, he
has the benefit of economies of scale; the funds pay lesser costs because of larger
volumes, a benefit passed on to its investors.

Liquidity:

Often, investors hold shares or bonds they cannot directly, easily and quickly sell. When
they invest in the units of a fund, they can generally cash their investments any time, by
selling their units to the fund if open-ended, or selling them in the market if the fund
is close-end. Liquidity of investment is clearly a big benefit.

Convenience And Flexibility:

Mutual fund management companies offer many investor services that a direct market
investor cannot get. Investors can easily transfer their holding from one scheme to the
other; get updated market information and so on.

Tax Benefits:

Any income distributed after March 31, 2002 will be subject to tax in the assessment
of all Unit holders. However, as a measure of concession to Unit holders of open-ended
equity- oriented funds, income distributions for the year ending March 31, 2003, will
be taxed at a concessional rate of 10.5%.

In case of Individuals and Hindu Undivided Families a deduction upto Rs. 9,000 from
the Total Income will be admissible in respect of income from investments specified in
Section 80L, including income from Units of the Mutual Fund. Units of the schemes are
not subject to Wealth-Tax and Gift-Tax.

Choice of Schemes:

Mutual Funds offer a family of schemes to suit your varying needs over a lifetime.
Well Regulated:

All Mutual Funds are registered with SEBI and they function within the provisions of
strict regulations designed to protect the interests of investors. The operations of Mutual
Funds are regularly monitored by SEBI.

Transparency:

You get regular information on the value of your investment in addition to disclosure
on the specific investments made by your scheme, the proportion invested in each class
of assets and the fund manager's investment strategy and outlook.

DISADVANTAGES OF INVESTING THROUGH MUTUAL FUNDS:

No Control Over Costs:

An investor in a mutual fund has no control of the overall costs of investing. The
investor pays investment management fees as long as he remains with the fund, albeit in
return for the professional management and research. Fees are payable even if the
value of his investments is declining. A mutual fund investor also pays fund
distribution costs, which he would not incur in direct investing. However, this
shortcoming only means that there is a cost to obtain the mutual fund services.

No Tailor-Made Portfolio:

Investors who invest on their own can build their own portfolios of shares and bonds
and other securities. Investing through fund means he delegates this decision to the
fund managers. The very-high-net-worth individuals or large corporate investors may
find this to be a constraint in achieving their objectives. However, most mutual fund
managers help investors overcome this constraint by offering families of funds- a large
number of different schemes- within their own management company. An investor
can choose from different investment plans and constructs a portfolio to his choice.
Managing A Portfolio Of Funds:

Availability of a large number of funds can actually mean too much choice for the
investor. He may again need advice on how to select a fund to achieve his objectives,
quite similar to the situation when he has individual shares or bonds to select.

The Wisdom Of Professional Management:

That's right, this is not an advantage. The average mutual fund manager is no better at
picking stocks than the average nonprofessional, but charges fees.

No Control:

Unlike picking your own individual stocks, a mutual fund puts you in the passenger
seat of somebody else's car.

Dilution:

Mutual funds generally have such small holdings of so many different stocks that
insanely great performance by a fund's top holdings still doesn't make much of a
difference in a mutual fund's total performance.

TYPES OF MUTUAL FUNDS SCHEMES IN INDIA :

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial
position, risk tolerance and return expectations etc. thus mutual funds has Variety of
flavors, Being a collection of many stocks, an investors can go for picking a mutual fund
might be easy. There are over hundreds of mutual funds scheme to choose from. It is
easier to think of mutual funds in categories, mentioned below.
 TYPES OF MUTUAL
FUNDS

BY INVESTMENT
BY STRUCTURE BY NATURE OTHER SCHEMES
OBJECTIVE

Open - Ended Tax Saving

Equity Fund Growth Schemes
Schemes Schemes

Close - Ended
Debt Funds Income Schemes Index Schemes
Schemes

Sector Specific
Interval Schemes Balanced Funds Balanced Schemes
Schemes

Money Market
Schemes

BY STRUCTURE :

1. Open - Ended Schemes:

An open-end fund is one that is available for subscription all through the
year. These do not have a fixed maturity. Investors can conveniently buy and sell
units at Net Asset Value ("NAV") related prices. The key feature of open-end
schemes is liquidity.

2. Close - Ended Schemes:

A closed-end fund has a stipulated maturity period which generally ranging

from 3 to 15 years. The fund is open for subscription only during a specified period.
Investors can invest in the scheme at the time of the initial public issue and thereafter
they can buy or sell the units of the scheme on the stock exchanges where they are
listed. In order to provide an exit route to the investors, some close-ended funds give
an option of selling back the units to the Mutual Fund through periodic repurchase
at NAV related prices. SEBI Regulations stipulate that at least one of the two exit
routes is provided to the investor.
3. Interval Schemes:

Interval Schemes are that scheme, which combines the features of open-
ended and close-ended schemes. The units may be traded on the stock exchange or
may be open for sale or redemption during pre-determined intervals at NAV related
prices.

BY NATURE :

Equity Fund:

These funds invest a maximum part of their corpus into equities holdings. The structure
of the fund may vary different for different schemes and the fund manager’s outlook
on different stocks. The Equity Funds are sub-classified depending upon their
investment objective, as follows:

 Diversified Equity Funds

 Mid-Cap Funds

 Sector Specific Funds

 Tax Savings Funds (ELSS)

Equity investments are meant for a longer time horizon, thus Equity funds rank high on
the risk-return matrix.

Debt Funds:

The objective of these Funds is to invest in debt papers. Government authorities, private
companies, banks and financial institutions are some of the major issuers of debt
papers. By investing in debt instruments, these funds ensure low risk and provide
stable income to the investors. Debt funds are further classified as:

 Gilt Funds: Invest their corpus in securities issued by Government,

popularly known as Government of India debt papers. These Funds
carry zero Default risk but are associated with Interest Rate risk.
  Income Funds:

Invest a major portion into various debt instruments such as

bonds, corporate debentures and Government securities.

 MIPs:

Invests maximum of their total corpus in debt instruments while the

take minimum exposure in equities. It gets benefit of both equity and
debt market. These scheme ranks slightly high on the risk-return matrix
when compared with other debt schemes.

 Short Term Plans (STPs):

Meant for investment horizon for three to six months. These

funds primarily invest in short term papers like Certificate of Deposits
(CDs) and Commercial Papers (CPs). Some portion of the corpus is also
invested in corporate debentures.

 Liquid Funds:

Also known as Money Market Schemes, These funds provides

easy liquidity and preservation of capital. These schemes invest in
short-term instruments like Treasury Bills, inter-bank call money market,
CPs and CDs. These funds are meant for short-term cash management of
corporate houses and are meant for an investment horizon of 1day to 3
months. These schemes rank low on risk-return matrix and are
considered to be the safest amongst all categories of mutual funds.

Balanced Funds:

As the name suggest they, are a mix of both equity and debt funds. They invest in both
equities and fixed income securities, which are in line with pre-defined investment
objective of the scheme. These schemes aim to provide investors with the best of both
the worlds. Equity part provides growth and the debt part provides stability in returns.
BY INVESTMENT OBJECTIVE:

Growth Schemes:

Growth Schemes are also known as equity schemes. The aim of these schemes is
to provide capital appreciation over medium to long term. These schemes normally
invest a major part of their fund in equities and are willing to bear short-term decline
in value for possible future appreciation.

Income Schemes:

Income Schemes are also known as debt schemes. The aim of these schemes is
to provide regular and steady income to investors. These schemes generally invest in
fixed income securities such as bonds and corporate debentures. Capital appreciation in
such schemes may be limited.

Balanced Schemes:

Balanced Schemes aim to provide both growth and income by periodically

distributing a part of the income and capital gains they earn. These schemes invest in
both shares and fixed income securities, in the proportion indicated in their offer
documents (normally 50:50).

Money Market Schemes:

Money Market Schemes aim to provide easy liquidity, preservation of capital

and moderate income. These schemes generally invest in safer, short-term
instruments, such as treasury bills, certificates of deposit, commercial paper and inter-
bank call money.

Load Funds:

A Load Fund is one that charges a commission for entry or exit. That is, each
time you buy or sell units in the fund, a commission will be payable. Typically entry and
exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a
good performance history

No-Load Funds:

A No-Load Fund is one that does not charge a commission for entry or exit. That
is, no commission is payable on purchase or sale of units in the fund. The advantage
of a no load fund is that the entire corpus is put to work.

OTHER SCHEMES :

Tax Saving Schemes:

Tax-saving schemes offer tax rebates to the investors under tax laws prescribed
from time to time. Under Sec.88 of the Income Tax Act, contributions made to any
Equity Linked Savings Scheme (ELSS) are eligible for rebate.

Index Schemes:

Index schemes attempt to replicate the performance of a particular index such

as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of only
those stocks that constitute the index. The percentage of each stock to the total holding
will be identical to the stocks index weightage. And hence, the returns from such
schemes would be more or less equivalent to those of the Index.

SELECTION PARAMETERS FOR MUTUAL FUND :

Your objective:

The first point to note before investing in a fund is to find out whether your
objective matches with the scheme. It is necessary, as any conflict would directly affect
your prospective returns. Similarly, you should pick schemes that meet your specific
needs. Examples: pension plans, children’s plans, sector-specific schemes, etc.

Your risk capacity and capability:

This dictates the choice of schemes. Those with no risk tolerance should go for
debt schemes, as they are relatively safer. Aggressive investors can go for equity
investments. Investors that are even more aggressive can try schemes that invest in
specific industry or sectors.
Fund Manager’s and scheme track record:

Since you are giving your hard earned money to someone to manage it, it is
imperative that he manages it well. It is also essential that the fund house you choose
has excellent track record. It also should be professional and maintain high transparency
in operations. Look at the performance of the scheme against relevant market
benchmarks and its competitors.

Cost factor:

Though the AMC fee is regulated, you should look at the expense ratio of the
fund before investing. This is because the money is deducted from your investments. A
higher entry load or exit load also will eat into your returns. A higher expense ratio can
be justified only by superlative returns. It is very crucial in a debt fund, as it will
devour a few percentages from your modest returns.

Also, Morningstar rates mutual funds. Each year end, many financial
publications list the year's best performing mutual funds. Naturally, very eager
investors will rush out to purchase shares of last year's top performers. That's a big
mistake. Remember, changing market conditions make it rare that last year's top
performer repeats that ranking for the current year. Mutual fund investors would be
well advised to consider the fund prospectus, the fund manager, and the current
market conditions. Never rely on last year's top performers.

Types of Returns on Mutual Fund:

There are three ways, where the total returns provided by mutual funds can be enjoyed
by investors:

Income is earned from dividends on stocks and interest on bonds. A

fund pays out nearly all income it receives over the year to fund owners
in the form of a distribution.

If the fund sells securities that have increased in price, the fund has a
capital gain. Most funds also pass on these gains to investors in a
distribution.

If fund holdings increase in price but are not sold by the fund manager, the fund's
shares increase in price. You can then sell your mutual fund shares for a profit. Funds
will also usually give you a choice either to receive a check for distributions or to
reinvest the earnings and get more shares.

MARKETING STRATEGICS FOR MUTUAL FUNDS :

Business Accounts :

The most common sales and marketing strategies for mutual funds is to sign-up
companies as a preferred option for their retirement plans. This provides a simple way
to sign-up numerous accounts with one master contract. To market to these firms, sales
people target human resource professionals. Marketing occurs through traditional
business-to-business marketing techniques including conferences, niche advertising
and professional organizations. For business accounts, fund representatives will
stress ease of use and compatibility with the company's present systems.

Consumer Marketing :

Consumer marketing of mutual funds is similar to the way other financial products are
sold. Marketers emphasize safety, reliability and performance. In addition, they may
provide information on their diversity of choices, ease of use and low costs. Marketers
try to access all segments of the population. They use broad marketing platforms such
as television, newspapers and the internet. Marketers especially focus on financially
oriented media such as CNBC television and Business week magazine.

Performance :

Mutual funds must be very careful about how they market their performance, as this is
heavily regulated. Mutual funds must market their short, medium and long-term
average returns to give the prospective investor a good idea of the actual performance.
For example, most funds did very well during the housing boom. However, if the bear
market that followed is included, performance looks much more average. Funds may
also have had different managers with different performance records working on the
same funds, making it hard to judge them.

Marketing Fees :

Mutual funds must be very clear about their fees and report them in all of their
marketing materials. The main types of fees include the sales fee (load) and the
management fee. The load is an upfront charge that a mutual fund charges as soon as the
investment is made. The management fee is a percentage of assets each year, usually 1
to 2 percent.

STRUCTURE OF MUTUAL FUNDS :

India has a legal framework within which Mutual Fund have to be constituted. In
India open and close-end funds operate under the same regulatory structure i.e. as unit
Trusts. A Mutual Fund in India is allowed to issue open-end and close-end schemes
under a common legal structure. The structure that is required to be followed by any
Mutual Fund in India is laid down under SEBI (Mutual Fund) Regulations, 1996.

The Fund Sponsor:

Sponsor is defined under SEBI regulations as any person who, acting alone or
in combination of another corporate body establishes a Mutual Fund. The sponsor of
the fund is akin to the promoter of a company as he gets the fund registered with SEBI.
The sponsor forms a trust and appoints a Board of Trustees. The sponsor also appoints
the Asset Management Company as fund managers. The sponsor either directly or
acting through the trustees will also appoint a custodian to hold funds assets. All these
are made in accordance with the regulation and guidelines of SEBI.

As per the SEBI regulations, for the person to qualify as a sponsor, he must
contribute at least 40% of the net worth of the Asset Management Company and
possesses a sound financial track record over 5 years prior to registration.

Mutual Funds as Trusts:

A Mutual Fund in India is constituted in the form of Public trust Act, 1882. The
Fund sponsor acts as a settlor of the Trust, contributing to its initial capital and appoints
a trustee to hold the assets of the trust for the benefit of the unit-holders, who are the
beneficiaries of the trust. The fund then invites investors to contribute their money in
common pool, by scribing to “units” issued by various schemes established by the
Trusts as evidence of their beneficial interest in the fund.

It should be understood that the fund should be just a “pass through” vehicle.
Under the Indian Trusts Act, the trust of the fund has no independent legal capacity
itself, rather it is the Trustee or the Trustees who have the legal capacity and therefore all
acts in relation to the trusts are taken on its behalf by the Trustees. In legal parlance the
investors or the unit-holders are the beneficial owners of the investment held by the
Trusts, even as these investments are held in the name of the Trustees on a day-to-day
basis. Being public trusts, Mutual Fund can invite any number of investors as
beneficial owners in their investment schemes.

Trustees:

A Trust is created through a document called the Trust Deed that is executed
by the fund sponsor in favour of the trustees. The Trust- the Mutual Fund – may be
managed by a board of trustees- a body of individuals, or a trust company- a corporate
body. Most of the funds in India are managed by Boards of Trustees. While the boards
of trustees are governed by the Indian Trusts Act, where the trusts are a corporate body,
it would also require to comply with the Companies Act, 1956. The Board or the Trust
company as an independent body, acts as a protector of the of the unit-holders
interests. The Trustees do not directly manage the portfolio of securities. For this
specialist function, the appoint an Asset Management Company. They ensure that the
Fund is managed by ht AMC as per the defined objectives and in accordance with the
trusts deeds and SEBI regulations.

The Asset Management Companies :

The role of an Asset Management Company (AMC) is to act as the investment

manager of the Trust under the board supervision and the guidance of the Trustees. The
AMC is required to be approved and registered with SEBI as an AMC. The AMC of a
Mutual Fund must have a net worth of at least Rs. 10 Crores at all times. Directors of
the AMC, both independent and non-independent, should have adequate professional
expertise in financial services and should be individuals of high morale standing, a
condition also applicable to other key personnel of the AMC. The AMC cannot act as
a Trustee of any other Mutual Fund. Besides its role as a fund manager, it may
undertake specified activities such as advisory services and financial consulting,
provided these activities are run independent of one another and the AMC’s resources
(such as personnel, systems etc.) are properly segregated by the activity.
Custodian and Depositories:

Mutual Fund is in the business of buying and selling of securities in large

volumes. Handling these securities in terms of physical delivery and eventual
safekeeping is a specialized activity. The custodian is appointed by the Board of
Trustees for safekeeping of securities or participating in any clearance system through
approved depository companies on behalf of the Mutual Fund and it must fulfill its
responsibilities in accordance with its agreement with the Mutual Fund. The custodian
should be an entity independent of the sponsors and is required to be registered with
SEBI. With the introduction of the concept of dematerialization of shares the
dematerialized shares are kept with the Depository participant while the custodian
holds the physical securities. Thus, deliveries of a fund’s securities are given or
received by a custodian or a depository participant, at the instructions of the AMC,
although under the overall direction and responsibilities of the Trustees.

Bankers:

A Fund’s activities involve dealing in money on a continuous basis primarily

with respect to buying and selling units, paying for investment made, receiving the
proceeds from sale of the investments and discharging its obligations towards
operating expenses. Thus the Fund’s banker plays an important role to determine
quality of service that the fund gives in timely delivery of remittances etc.

Transfer Agents:

Transfer agents are responsible for issuing and redeeming units of the Mutual Fund and
provide other related services such as preparation of transfer documents and updating
investor records. A fund may choose to carry out its activity in-house and charge the
scheme for the service at a competitive market rate. Where an outside Transfer agent is
used, the fund investor will find the agent to be an important interface to deal with,
since all of the investor services that a fund provides are going to be dependent on the
transfer agent.
MUTUAL FUND COMPANIES IN INDIA:

The concept of mutual funds in India dates back to the year 1963. The era between
1963 and 1987 marked the existance of only one mutual fund company in India with Rs.
67bn assets under management (AUM), by the end of its monopoly era, the Unit Trust
of India (UTI). By the end of the 80s decade, few other mutual fund companies in
India took their position in mutual fund market.

The new entries of mutual fund companies in India were SBI Mutual Fund,
Canbank Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual
Fund, Bank of India mutual funds.

The succeeding decade showed a new horizon in Indian mutual fund industry.
By the end of 1993, the total AUM of the industry was Rs. 470.04 bn. The private sector
funds started penetrating the fund families. In the same year the first Mutual Fund
Regulations came into existance with re-registering all mutual funds except UTI. The
regulations were further given a revised shape in 1996.

Kothari Pioneer was the first private sector mutual fund company in India
which has now merged with Franklin Templeton. Just after ten years with private
sector players penetration, the total assets rose up to Rs. 1218.05 bn. Today there are
33 mutual fund companies in India.

MAJOR COMPANIES IN MUTUAL FUND :

 ABN AMRO Mutual Fund

 Reliance Mutual Fund
 Birla Sun Life Mutual Fund
 Bank of Baroda Mutual Fund
 HDFC Mutual Fund
 HSBC Mutual Fund
 ING Vysya Mutual Fund
 Prudential ICICI Mutual Fund
 State Bank of India Mutual Fund
 Tata Mutual Fund
 Standard Chartered Mutual Fund
 Franklin Templeton India Mutual Fund
 Morgan Stanley Mutual Fund India
 Escorts Mutual Fund
 Alliance Capital Mutual Fund
 Benchmark Mutual Fund
 Canbank Mutual Fund
 Chola Mutual Fund
 Unit Trust of India Mutual Fund
 LIC Mutual Fund

Market Share
'09
Reliance Mutual HDFC Mutual Birla Sun Life Mutual
Fund Fund Fund
ICICI Prudential Mutual Kotak Mahindra Mutual UTI Mutual
Fund Fund Fund
LIC Mutual SBI Mutual IDFC Mutual
Fund Fund Fund
TATA Mutual Franklin templeton Mutual Fund DSP Black Mutual
Fund Fund
23 others
players
14 14
4% 3% % %
3% 20
%
3%
4 9 9
% % 9 %
4 %
%

4
%